Record year for Rezidor in the Middle East

One of the 2009 company highlights was the introduction of its mid-market brand - Park Inn - to the region, which saw properties opened in Muscat, Oman and Al Khobar, Kingdom of Saudi Arabia. A third Park Inn opening is scheduled this November on Abu Dhabi's Yas Island - the home of the inaugural 2009 Formula One™ Etihad Airways Grand Prix.

And, according to Rezidor's CEO & President, Kurt Ritter, the increased mid-market brand openings are indicative of growing regional demand for cost-effective travel solutions.

"Generally, the Middle East is an extremely tough and fast moving market compared to Europe. It has always been very luxury orientated but we are now seeing an escalating trend for mid-market brands such as our Park Inn. This was a natural progression and one which we identified early on as a key growth area in the Middle East,"

said Ritter.

This year has also seen the Group - which has a combined portfolio of more than 380 hotels in operation or under development in 59 countries - open properties in a host of new Middle East and North African (MENA) markets including Alexandria and Cairo in Egypt, Al Khobar and Al Madinah in Saudi Arabia and Tripoli, Lybia.

And according to Ritter, Rezidor also plans to introduce two new brands to the region in the next few years, with the planned openings of the designer Hotel Missoni Kuwait due in 2010 and the luxury Regent brand in Abu Dhabi, UAE and Doha, Qatar.

'The Middle East is an area with great potential. There are many development projects in the pipeline which offer solid investment opportunities for hotel growth. We are also seeing best-in-class business regulation and support networks being established on regional, federal and city levels," said Ritter.

"In addition, the growing international network offered by regional and international carriers - both commercial and low-cost - means the Middle East is easily accessible from all corners of the globe. As such, our commitment to this region as a core, long-term growth market is well evidenced by our continued investment."

Rezidor was one of the first hotel companies to put policies in place to deal with the global market downturn, when in August 2008 the company introduced its 'Hedging for Turbulence' cost saving initiative.

Targeting a €30m-a-year expenditure reduction, the programme was implemented to streamline all aspects of Rezidor's business - from leased and managed hotels to corporate offices - across its operating regions of Europe, Middle East and Africa.

Ritter, who is on a regional fact finding mission, also confirmed the company remains committed to its medium and long-term development strategies which include pursuing an asset light business model, a shift of its business towards fee-based contracts, an increased presence in the emerging markets of Africa, the CIS and Russia, and a focus on effective asset management and conversions.

"As a result of the global economic downturn, Rezidor has implemented a group-wide and ambitious cost saving programme, which will be critical in managing our growth through these testing times. However, we are also looking ahead to future expansion and will focus on profitable pipeline projects, dynamic emerging markets, development of our asset-light business ethos and concentrating on management and franchise contracts with limited or no risk," he said.

"We have also made significant investments in our sales and marketing teams, which allows them to maintain our aggressive market penetration rates, especially within key areas such as Iran, Turkey and the Levant. At the same time, we also remain focused on developing business from markets such as France and Scandinavia, which we believe will generate a lot of MICE business opportunities."

Rezidor currently operates 22 hotels and 5,649 rooms in the Middle East, with this figure expected to swell to 25 properties representing 6,677 rooms by the end of the year.